$1,400,000 Preferred Stock $200,000 APIC-P.S. $300,000 What if the preferred stock was trading at $1,000 per share? Cash $2,000,000 Common Stock $100,000 APIC-C.S. $1,100,000 Preferred Stock $200,000 APIC-P.S. $600,000 Chapter 18 In-Class Problems (with solutions) ACG3151 How much of the dividend will be paid to the common shareholders, and how much will be paid to the preferred shareholders?
Present Value | Rate per period | 2.246 | 0.552 | | Cash Inflow | 8000 | 10000 | | Present Value | 17968 | 5520 | 23488 | 2. Cash flow calculations and net present value On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net-present- value method and desires a 16% return on investments. a.
1) Taxpayer Limited paid $10,000 to purchase computer applications software (before apply HST) on January 31, 2013. Taxpayer Limited has a December 31 year-end. What is the maximum tax deduction that Taxpayer Limited can claim in respect of the above expenditure for its taxation year ended December 31, 2013, assuming that Taxpayer is registered to collect and remit HST? 2) CLASS 10.1 ABC Ltd. is a manufacturer with a December 31 year-end. On January 1, 2013, the undepreciated capital cost for Class 10.1 was $22,950.
• begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. • shows how long the firm keeps its inventory before selling it. Click here to download STR 581 Week 4 Capstone 2 19. Ajax Corp. is expecting the following cash flows - $79,000, $112,000, $164,000, $84,000, and $242,000 – over the next five years. If the company’s opportunity cost is 15 percent, what is the present value of these cash flows?
#3.5 Brandywine Homecare Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. A. Construct Brandywine’s 2007 income statement. Brandywine Homecare Income statement Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation $ 1,500,000 Other 12,000,000 x 75/100 = 9,000,000 Total expenses= Depreciation + Other expenses= 1,500,000+ 9,000,000= $10,500,000 Total revenue – total expenses = Net income or Profit - 12,000,000- 10,500,000= 1,500,000 B.
ALTERNATIVE PROBLEMS AND SOLUTIONS ALTERNATIVE PROBLEMS 11- 1A. (Individual or Component Costs of Capital) Compute the cost for the following sources of Financing: a. A bond that has a $1,000 par value (face value) and a contract or coupon interior rate of 12%. A new issue would have a flotation cost of 6% of the $1,125 market value. The bonds mature in 10 years.
The realized gain for Elizabeth is 4500. The basis of Debbie’s new property is $12,000. The basis of Elizabeth’s property is $13,500 34. Jim Junction purchased a truck for business on November 17, 2010, for $40,000. On July 21, 2011, he exchanged the truck for another truck in a like-kind exchange.
Given the following cash flow stream at the end of each year: Year 1: $4,000 Year 2: $2,000 Year 3: 0 Year 4: -$1,000 Using a 10% discount rate, the present value of this cash flow stream is: a. $4,606 b. $3,415 c. $3,636 d. Other 8. Consider a 10-year annuity that promises to pay out $10,000 per year, given this is an ordinary annuity and that an investor can earn 10% on her money, the future value of this annuity, at the end of 10 years, would be: a. $175,312 b.
Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X? (TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?